People have always been central to organizations, but their strategic importance is growing in today's knowledge-based business world like never before. An organization's success increasingly depends on the knowledge, skills, and abilities of its employees. Particularly as they help establish a set of core competencies which distinguish one organization from its competitors. When employees' talents are valuable, rare, difficult to imitate and organize, an organization can achieve a sustained competitive advantage.

In order to "compete through people", an organization has to be able to do a good job of managing their human capital: the knowledge, skills, and capabilities that add value to the organizations. Managers must develop strategies for identifying, recruiting, and hiring the best talent available. Develop these individuals in ways that are specific to the needs o

Human Resource Management's front-line fight is to get the organization in order. As Tom Peters stated in A passion for Excellence " Trust people treat them like adults, enthuse them by lively and imaginative leadership, develop and demonstrate an obsession for quality, make them feel they own the business, and your work force will respond with total commitment".

External equity can be determined by a wage survey. Data obtained from the surveys will facilitate establishing the organization's wage policy while ensuring that the employer does not pay more, or less, than needed for jobs in the relevant labor market.

Incentive pay plans can be advantageous to both the employer as well as the employee. The success of an incentive pay plan depends on the organizational climate in which it must operate, employee confidence in it, and its suitability to employee and organizational needs. Importantly, employees must view the incentive plan to be equitable and related to their performance. Performance measures should be quantifiable, easily understood, and bear a demonstrated relationship to organizational performance.

Compensation must reward employees for past performance while serving as a motivation tool for future performances. Internal and external equity of the pay program will affect employees' concepts of fairness. Organizations must balance each of the concerns while still remaining competitive.

The basis on which compensation payments are determined, and the way they are administered, can significantly affect employee productivity and the achievement of organizational goals. Establishing compensation programs require both large and small organizations to consider specific goals. Employee retention, compensation distribution and adherence to the budget must be carefully weighted against the overall organizational goals and expectations.

Benefits are an established and integral part of the total compensation package. In order to have a sound benefits package there are certain basic considerations. I

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Human Resource, Excellence Trust, Resource Manager, , Resource Management's, human resource, Tom Peters, training program, reward employees past, benefits package, resource manager, external equity, reward employees, employees past, organizational goals, competitive advantage, recruiting retaining,
Approximate Word count = 1372
Approximate Pages = 5 (250 words per page double spaced)